UPDATE 3-Barrick strikes deal with Pascua-Lama mine opponents

SANTIAGO May 28 (Reuters) - Canadian miner Barrick Gold
has come to an initial agreement with local indigenous
peoples in Chile who have opposed its stalled Pascua-Lama mine,
taking a first step on what my be a long road to reactivating
the project.

Barrick, the world's largest gold miner, halted the gold and
copper project on the Chilean and Argentine border last year
after investing $5 billion in it.

Pascua-Lama, which Barrick had been counting on to provide a
large share of its future gold production, has been plagued by
permitting issues, cost overruns and a sharp drop in bullion
prices, as well as the strong and organized opposition of the
local Diaguita indigenous communities.

The new memorandum of understanding between 15 of the 18
communities and Barrick is an initial step towards bringing the
two sides together, Lorenzo Soto, the lawyer for the Diaguita,
told Reuters on Wednesday.

"A new phase in the way that large-scale mining is done in
Chile has begun," said Soto, who is known for representing
indigenous communities in cases against mining projects,
including Goldcorp's El Morro mine, located near
Pascua-Lama.

Barrick's office in Chile said in a statement that the new
initiative leaves behind the "sourness" of the past.

"Although Pascua-Lama is suspended today, our aim is to
obtain the permits to restart construction," Barrick said. The
company recently met with the Chilean mining minister to express
its interest in continuing with the project, the minister told
Reuters last week.
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